Company reaches
'We are pleased to report continued strength in our Enterprise market, and strong profitability across the business,' said
Second Quarter Fiscal 2020 Financial Highlights
Total revenue in Q2-F2020 was
The Annual Contract Value Base ('ACV Base') at
The Enterprise & Government portions of the ACV Base, combined, increased by 12% annually and by 4% sequentially. Enterprise & Government sector customers represented 69% of the ACV Base at
The Education sector portion of the ACV Base decreased by 8% annually and by 4% sequentially. Education sector customers represented 31% of the ACV Base at
Incremental ACV from New Customers was
Net ACV Retention from existing customers was 100% in Q2-F2020, compared with 101% in Q2-F2019.
Adjusted EBITDA in Q2-F2020 was
Cash generated from operating activities in Q2-F2020 was
Absolute paid a quarterly dividend of
Quarterly Developments
In
In
In
In
In
In
In
Summary of Key Financial Metrics
summary of key financial metrics
Notes:
1.Commercial recurring revenue represents revenue derived from Cloud Services (as defined below) and recurring managed professional services, both of which are included as part of our ACV Base. Other revenue represents revenue derived from non-recurring professional services and ancillary product lines, including consumer products.
2.Throughout this document, 'Adjusted EBITDA' is used as a profitability measure. Please refer to the 'Non-IFRS Measures' section of this MD&A for further discussion on this and other non-IFRS measures.
3.The Company adopted IFRS 16, 'Leases', effective
F2020 Corporate Outlook
The Company's outlook for F2020 is unchanged and is as follows:
Revenue is expected to be between
Adjusted EBITDA is expected to be between 18% and 22% of revenue.
Cash from operating activities is expected to be between 16% and 22% of revenue.
Capital expenditures are expected to be between
The Company's forecast for Adjusted EBITDA and cash from operating activities incorporates the impact of IFRS 16, 'Leases', which was adopted
The foregoing expectations constitute forward-looking information and financial outlook and are qualified in their entirety by the cautionary statement below.
Quarterly Dividend
On
Quarterly Filings
Management's Discussion and Analysis ('MD&A') and Consolidated Financial Statements and the notes thereto for the fiscal period ended
Notice of Conference Call
Absolute will hold a conference call to discuss its Q2-F2020 financial results on
A live audio webcast of the conference call will be available at www.absolute.com and here. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available on the Company's website for 90 days.
Non-IFRS Measures and Definitions
Throughout this press release, the Company refers to a number of measures that the Company believes are meaningful in the assessment of the Company's performance. All these metrics are nonstandard measures under International Financial Reporting Standards ('IFRS'), and are unlikely to be comparable to similarly titled measures reported by other companies. Readers are cautioned that the disclosure of these items is meant to add to, and not replace, the discussion of financial results or cash flows from operations as determined in accordance with IFRS. For a discussion of the purpose of these non-IFRS measures, please refer to the Company's MD&A for the period ended
These measures, as well as their method of calculation or reconciliation to IFRS measures, are as follows:
1.ACV Base, Net ACV Retention and ACV from New Customers
As the majority of the Company's customer contracts are sold under multiyear term licenses, there is a significant lag between the timing of the billing and the associated revenue recognition. As a result, the Company focuses on the aggregate annualized value of its subscriptions under contract, measured by Annual Contract Value, as an indicator of its future revenues.
The ACV Base measures the amount of recurring annual revenue Absolute will receive from its commercial customers under contract at a point in time, and therefore is an indicator of the Company's future revenue streams. Net ACV Retention measures the percentage increase or decrease in the Commercial ACV Base at the end of a period for the customers that made up the Commercial ACV Base at the beginning of the same period. This metric provides insight into the effectiveness of Absolute's customer retention and expansion functions. ACV from New Customers measures the addition to the Commercial ACV Base from sales to new commercial customers during the quarter.
We believe that increases in the amount of ACV from New Customers, and improvement in the Company's Net ACV Retention, will grow our Commercial ACV Base and, in turn, our future revenues.
2.Adjusted EBITDA and Adjusted EBITDA - pre-IFRS 16
Management believes that analyzing operating results exclusive of significant noncash items or items not controllable in the period provides a useful measure of the Company's performance. The term 'Adjusted EBITDA' refers to earnings before deducting interest and investment gains (losses), income taxes, amortization of property and equipment and right of use assets, foreign exchange gain or loss, share-based compensation, and restructuring and reorganization charges and post-retirement benefits. The items excluded in the determination of Adjusted EBITDA are share-based compensation, amortization of property and equipment and right of use assets, and restructuring and reorganization charges and certain post-retirement benefits.
Management believes that presenting F2020 Adjusted EBITDA on a pre-IFRS 16 basis will provide a meaningful comparative to F2019 Adjusted EBITDA.
About Absolute
Absolute empowers more than 12,000 customers worldwide to protect devices, data, applications, and users against theft or attack-both on and off the corporate network. With the industry's only tamper-proof endpoint visibility and control solution, Absolute allows IT organizations to enforce asset management, security hygiene, and data compliance for today's remote digital workforces. Absolute's patented Persistence technology is embedded in the firmware of
2020
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